The IBF will be a common platform for a cross-section of companies and individuals working in Indonesia to fulfil the objective.
Nearly 150 Indian executives, entrepreneurs and professionals attended the launch.
Indonesia's Trade Minister Gita Wirjawan said that India and Indonesia are yet to achieve the true potential of their economic partnership, and that such forums would benefit both the countries.
Indian Ambassador to Indonesia, Gurjit Singh, said that the forum was set up not only to act as a facilitator for increased and diversified trade but also to seek more investment.
"In order to expand trade, India Inc will work through this forum with the embassy to find ways for new technology transfer and new investments," Singh said.
Singh said that the forum would look at new plans and visions and play a facilitating role with the 'very friendly' government of Indonesia.